PULTEGROUP INC/MI/

Previous wording

The following discussion and analysis of our financial condition and results of operations are provided as a supplement to and should be read in conjunction with the consolidated financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q as well as our audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2025.

Current wording

The following discussion and analysis of our financial condition and results of operations is provided as a supplement to and should be read in conjunction with the consolidated financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q as well as our audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2025.

Previous wording

Demand conditions remained challenging through the second quarter of 2026 as the result of elevated mortgage interest rates, higher housing costs, and general economic uncertainty. Volatility in geopolitical conditions, in part due to tensions in the Middle East, has also negatively impacted inflation and interest rates, further weakening consumer confidence. We have continued responding to these conditions by adjusting production cadence and sales prices where necessary and focusing sales incentives on discounts on spec inventory (houses without customer orders), closing cost incentives, and mortgage interest rate buydowns. These pricing actions contributed to a 6% increase in net new orders in units, but lower average selling prices and gross margins, during the second quarter of 2026 compared to the prior year period. Closings decreased 8% in the second quarter of 2026 compared to the prior year period primarily due to a lower order backlog entering 2026 compared to 2025.

Current wording

Demand conditions further weakened during the third quarter of 2026. Elevated mortgage rates, which increased sharply during the third quarter of 2026, most notably during September, continue to pressure affordability and consumer demand. These conditions, together with higher housing costs, broader economic uncertainty, and volatility in geopolitical conditions, in part due to tensions in the Middle East, have also negatively impacted inflation, interest rates, and consumer confidence. We have continued responding to these conditions by adjusting production cadence and sales prices where necessary and focusing sales incentives on discounts, closing cost incentives, and mortgage interest rate buydowns. We have also continued to manage our spec inventory levels, leveraging sales incentives as needed. Despite these pricing actions, net new orders in units decreased 6% compared to the prior year period. Closings decreased 9% in the third quarter of 2026, while average selling prices decreased 1%.

Previous wording

We expect that many homebuyers will continue to face affordability challenges. In response, we expect our sales incentives to remain elevated and for our pace of house starts to remain dynamic in response to market conditions. We have successfully lowered our mix of spec home inventory. However, we continue to face pressure in the cost of land acquisition and development. Due to the length of our land development and construction cycle times, there is a lag between when such cost changes occur and when they impact our operating results. Our gross margin from home sales decreased to 25.0% in the second quarter of 2026 versus 27.0% in the second quarter of 2025, but increased from 24.4% in the first quarter of 2026 after sequential quarterly declines since the beginning of 2025. These decreases since 2025 are primarily due to the aforementioned higher land costs, pricing actions, and elevated sales incentives in response to buyer affordability challenges and reducing our mix of spec inventory.

Current wording

We expect that many homebuyers will continue to face affordability challenges. In response, we expect our sales incentives to remain elevated and for our pace of house starts to remain dynamic in response to market conditions. We have successfully lowered our mix of spec home inventory. However, we continue to face pressure in the cost of land acquisition and development. Due to the length of our land development and construction cycle times, there is a lag between when such cost changes occur and when they impact our operating results. Our gross margin decreased to 24.8% in the third quarter of 2026 versus 26.2% in the third quarter of 2025, and 25.0% in the second quarter of 2026.

Previous wording

–Working with our trade partners to update the costs for materials, labor, and services to reflect changes in market conditions;

Current wording

–Working with our vendors to update the costs for materials, labor, and services to reflect changes in market conditions;

Previous wording

–Maintaining a focus on shareholder return through share buybacks and dividends, including $681.2 million of share repurchases in the first six months of 2026 and an 18% increase in our quarterly dividends from $0.22 to $0.26 per share effective with our January 2026 dividend payment;

Current wording

–Maintaining a focus on shareholder return through share buybacks and dividends, including $1.0 billion of share repurchases in the first nine months of 2026 and an 18% increase in our quarterly dividends from $0.22 to $0.26 per share effective with our January 2026 dividend payment; and

Previous wording

Home sale revenues in the three and six months ended June 30, 2026 were lower than the prior year periods by $460.9 million and $902.6 million, respectively. In the three months ended June 30, 2026, the 11% decrease resulted primarily from an 8% decrease in closings from the prior year period, combined with a 3% decrease in average selling price. In the six months ended June 30, 2026 the 11% decrease resulted primarily from an 8% decrease in closings, combined with a 4% decrease in average selling price. The decreases in closings were primarily attributable to a weaker order backlog entering the year, partially offset by a higher community count and improved production cycle times. Average selling price during the three and six months ended June 30, 2026 decreased primarily due to product and geographic mix, combined with efforts to reduce our level of spec inventory during 2026.

Current wording

Home sale revenues in the three and nine months ended September 30, 2026 were lower than the prior year periods by $389.3 million and $1.3 billion, respectively. In the three months ended September 30, 2026, the 9% decrease resulted primarily from a 9% decrease in closings from the prior year period, combined with a 1% decrease in average selling price. In the nine months ended September 30, 2026, the 11% decrease resulted primarily from an 8% decrease in closings, combined with a 3% decrease in average selling price. The decreases in closings were primarily attributable to the more challenging demand conditions, partially offset by a higher community count and improved production cycle times. Average selling price during the three and nine months ended September 30, 2026 decreased due to product and geographic mix, elevated sales incentives, and efforts to reduce our level of spec inventory during 2026.

Previous wording

Home sale gross margins were 25.0% and 24.7% in the three and six months ended June 30, 2026, respectively, compared with 27.0% and 27.2% in the three and six months ended June 30, 2025, respectively. The decreases in home sale gross margins were primarily attributable to the aforementioned pricing actions, including elevated sales incentives, and increased land acquisition and development costs. We expect these factors to continue to impact our gross margins over the near term. Gross margins for the first six months of 2026 were also unfavorably impacted by our efforts to reduce completed spec inventory to more appropriate levels.

Current wording

Home sale gross margins were 24.8% and 24.7% in the three and nine months ended September 30, 2026, respectively, compared with 26.2% and 26.9% in the three and nine months ended September 30, 2025, respectively. The decreases in home sale gross margins were primarily attributable to the aforementioned pricing actions, including elevated sales incentives, and increased land acquisition and development costs. We expect these factors to continue to impact our gross margins over the near term. Gross margins for the first nine months of 2026 were also unfavorably impacted by our efforts to reduce completed spec inventory to more appropriate levels.

Previous wording

We periodically elect to sell parcels of land to third parties in the event such assets no longer fit into our strategic operating plans or are zoned for commercial or other development. Land sale and other revenues and their related gains or losses vary between periods, depending on the timing of land sales and our strategic operating decisions. Land sale and other revenues contributed income of $10.8 million and $13.0 million for the three and six months ended June 30, 2026, respectively, compared with income of $4.1 million and $5.7 million for the three and six months ended June 30, 2025, respectively.

Current wording

We periodically elect to sell parcels of land to third parties in the event such assets no longer fit into our strategic operating plans or are zoned for commercial or other development. Land sale and other revenues and their related gains or losses vary between periods, depending on the timing of land sales and our strategic operating decisions. Land sale and other revenues contributed income of $2.7 million and $15.7 million for the three and nine months ended September 30, 2026, respectively, compared with income of $5.1 million and $10.8 million for the three and nine months ended September 30, 2025, respectively.

Previous wording

SG&A as a percentage of home sale revenues was 10.1% and 10.7% in the three and six months ended June 30, 2026, respectively, compared with 9.1% and 9.8% for the three and six months ended June 30, 2025, respectively. The gross dollar amount of our SG&A decreased $7.5 million, or 2%, for the three months ended June 30, 2026 compared with the prior year period, and decreased $20.5 million, or 3%, for the six months ended June 30, 2026 compared with the prior year period. The decrease in gross dollars for the three and six months ended June 30, 2026 was primarily attributable to lower variable costs associated with the decrease in closings along with lower liability insurance costs. We expect to continue managing and balancing our overhead costs consistent with expected changes in the demand environment.

Current wording

SG&A as a percentage of home sale revenues was 10.3% and 10.6% in the three and nine months ended September 30, 2026, respectively, compared with 9.4% and 9.7% for the three and nine months ended September 30, 2025, respectively. The gross dollar amount of our SG&A decreased $3.5 million, or 1%, for the three months ended September 30, 2026 compared with the prior year period, and decreased $24.0 million, or 2%, for the nine months ended September 30, 2026 compared with the prior year period. The decrease in gross dollars for the three and nine months ended September 30, 2026 was primarily attributable to lower variable costs associated with the decrease in closings along with lower liability insurance costs. We expect to continue managing and balancing our overhead costs consistent with expected changes in the demand environment.

Previous wording

Other income (expense), net includes the following ($000’s omitted):

Current wording

Other income, net includes the following ($000’s omitted):

Previous wording

Net new orders in units increased 6% while net new orders in dollars increased 5% in the three months ended June 30, 2026, as compared with the prior year period. Net new orders in units increased 5% while net new orders in dollars increased 3% in the six months ended June 30, 2026, as compared with the prior year period. The increased net new order volume and dollars in the three and six months ended June 30, 2026 over the comparable prior year periods was primarily attributable to higher order volumes in our Florida and Midwest segments, partially offset by lower volumes in our West segment. Cancellation rates (canceled orders for the period divided by gross new orders for the period) were 13% for both the three and six months ended June 30, 2026, and 15% and 14% for the three and six months ended June 30, 2025, respectively. Ending backlog dollars, which represent orders for homes that have not yet closed, decreased 1% at June 30, 2026 compared with June 30, 2025.

Current wording

Net new orders in units decreased 6% while net new orders in dollars decreased 4% in the three months ended September 30, 2026, as compared with the prior year period. Net new orders in units increased 1% while net new orders in dollars increased 1% in the nine months ended September 30, 2026, as compared with the prior year period. The decreased net new order volume and dollars in the three months ended September 30, 2026 was primarily attributable to our West, Southeast, and Texas segments, partially offset by higher volumes in our Florida segment. The increased net new order volume and dollars in the nine months ended September 30, 2026 over the comparable prior year period was primarily attributable to higher order volumes in our Florida and Midwest segments, partially offset by lower volumes in our West segment. Cancellation rates (canceled orders for the period divided by gross new orders for the period) were 16% and 13% for the three and nine months ended September 30, 2026, respectively, and 16% and 15% for the three and nine months ended September 30, 2025, respectively. Ending backlog dollars, which represent orders for homes that have not yet closed, increased 3% at September 30, 2026 compared with September 30, 2025.

Previous wording

The number of homes in production at June 30, 2026 was 6% lower than at June 30, 2025. This decrease was primarily due to our focus on reducing the number of spec homes and improved production cycle times, which reduces the length of time a home remains under construction.

Current wording

The number of homes in production at September 30, 2026 was 3% lower than at September 30, 2025. This decrease was primarily due to our focus on reducing the number of spec homes and improved production cycle times, which reduces the length of time a home remains under construction.

Previous wording

While competition for well-positioned land is robust, we have continued to pursue land investments that we believe can achieve appropriate risk-adjusted returns on invested capital. We have also continued to seek to maintain a high percentage of our lots that are controlled via land option agreements as such contracts enable us to defer acquiring portions of properties owned by third parties or unconsolidated entities until we have determined whether and when to exercise our option, which reduces our financial risks associated with long-term land holdings. The remaining purchase price under our land option agreements totaled $9.7 billion at June 30, 2026.

Current wording

While competition for well-positioned land is robust, we have continued to pursue land investments that we believe can achieve appropriate risk-adjusted returns on invested capital. We have also continued to seek to maintain a high percentage of our lots that are controlled via land option agreements as such contracts enable us to defer acquiring portions of properties owned by third parties or unconsolidated entities until we have determined whether and when to exercise our option, which reduces our financial risks associated with long-term land holdings. The remaining purchase price under our land option agreements totaled $9.4 billion at September 30, 2026.

Previous wording

(c) Other homebuilding includes the amortization of intangible assets and capitalized interest and other items not allocated to the other segments.

Current wording

(c) Other homebuilding includes the amortization of intangible assets and capitalized interest and other items not allocated to the other segments. Other homebuilding also includes a gain of $21.4 million in the three and nine months ended September 30, 2026 related to the divestiture of certain manufacturing assets.

Previous wording

For the second quarter of 2026, Northeast home sale revenues decreased 33% when compared with the prior year period due to a 27% decrease in closings combined with an 8% decrease in average selling price. The decrease in closings and average selling price occurred across the majority of markets. Income before income taxes decreased 50%, primarily due to lower revenues and gross margins across the majority of markets. Net new orders increased across the majority of markets.

Current wording

For the third quarter of 2026, Northeast home sale revenues decreased 16% when compared with the prior year period due to an 11% decrease in closings combined with a 6% decrease in average selling price. The decrease in closings and average selling price occurred across the majority of markets. Income before income taxes decreased 31%, primarily due to lower revenues and gross margins across the majority of markets. The decrease in net new orders primarily occurred in our Mid-Atlantic operations.

Previous wording

For the six months ended June 30, 2026, Northeast home sale revenues decreased 31% when compared with the prior year period due to a 25% decrease in closings combined with an 8% decrease in average selling price. The decrease in closings and average selling price occurred across the majority of markets. Income before income taxes decreased 54% primarily due to lower revenues and gross margins across the majority of markets. Net new orders increased across all markets.

Current wording

For the nine months ended September 30, 2026, Northeast home sale revenues decreased 26% when compared with the prior year period due to a 20% decrease in closings combined with a 7% decrease in average selling price. The decrease in closings occurred across all markets, while the decrease in average selling price occurred across the majority of markets. Income before income taxes decreased 47% primarily due to lower revenues and gross margins across all markets. The decrease in net new orders primarily occurred in our Mid-Atlantic operations.

Previous wording

For the second quarter of 2026, Texas home sale revenues decreased 12% when compared with the prior year period due to an 8% decrease in closings combined with a 4% decrease in average selling price. The decrease in closings and average selling price occurred across the majority of markets. Income before income taxes decreased 21% primarily due to lower revenues across the majority of markets, and lower gross margins, which was mixed among markets. The increase in net new orders was mixed among markets.

Current wording

For the third quarter of 2026, Southeast home sale revenues decreased 12% when compared with the prior year period due to a 10% decrease in closings combined with a 2% decrease in average selling price. The decrease in closings occurred across all markets, while the decrease in average selling price was mixed among markets. Income before income taxes decreased 27%, primarily due to lower revenues and gross margins across the majority of markets. Net new orders decreased across the majority of markets.

Previous wording

For the second quarter of 2026, Southeast home sale revenues decreased 7% when compared with the prior year period due to a 2% decrease in closings combined with a 5% decrease in average selling price. The decrease in closings occurred across the majority of markets, while the decrease in average selling price was mixed among markets. Income before income taxes decreased 25%, primarily due to lower revenues across the majority of markets and lower gross margins across all markets. The increase in net new orders was mixed among markets.

Current wording

For the nine months ended September 30, 2026, Southeast home sale revenues decreased 7% when compared with the prior year period due to a 3% decrease in closings combined with a 4% decrease in average selling price. The decrease in closings occurred across the majority of markets, while the decrease in average selling price was mixed among markets. Income before income taxes decreased 27% primarily due to lower revenues across the majority of markets and lower gross margins across all markets. The decrease in net new orders was mixed among markets.

Previous wording

For the second quarter of 2026, Florida home sale revenues increased 1% when compared with the prior year period primarily due to a 1% increase in average selling price partially offset by a slight decrease in closings. The increase in average selling price and decrease in closings occurred across the majority of markets. Income before income taxes was in line with the comparable prior year period. Net new orders increased across all markets.

Current wording

For the third quarter of 2026, Florida home sale revenues increased slightly when compared with the prior year period primarily due to a 2% increase in average selling price partially offset by a 1% decrease in closings. The increase in average selling price occurred across all markets, while the decrease in closings occurred across the majority of markets. Income before income taxes decreased 3% primarily due to lower gross margins across the majority of markets. Net new orders increased across the majority of markets.

Previous wording

For the six months ended June 30, 2026, Florida home sale revenues decreased 2% when compared with the prior year period due to a 3% decrease in the average selling price partially offset by a 1% increase in closings. The decrease in average selling price and increase in closings occurred across the majority of markets. Income before income taxes decreased 14% primarily due to lower gross margins across the majority of markets. The increase in net new orders occurred across all markets.

Current wording

For the nine months ended September 30, 2026, Florida home sale revenues decreased 1% when compared with the prior year period due to a 2% decrease in the average selling price partially offset by a slight increase in closings. The decrease in average selling price and increase in closings occurred across the majority of markets. Income before income taxes decreased 10% primarily due to lower revenues and closings in our Southwest Florida operations, combined with lower gross margins across all markets. The increase in net new orders occurred across all markets.

Previous wording

For the second quarter of 2026, Midwest home sale revenues decreased 8% when compared with the prior year period due to an 8% decrease in closings combined with a slight decrease in average selling price. The decrease in closings occurred across the majority of markets while the decrease in average selling price was mixed among markets. Income before income taxes decreased 14% primarily due to lower revenues. The increase in net new orders occurred across the majority of markets.

Current wording

For the third quarter of 2026, Midwest home sale revenues decreased 8% when compared with the prior year period due to a 9% decrease in closings partially offset by a 1% increase in average selling price. The decrease in closings and increase in average selling price occurred across the majority of markets. Income before income taxes decreased 11% primarily due to lower revenues. The decrease in net new orders was mixed among markets.

Previous wording

For the six months ended June 30, 2026, Midwest home sale revenues decreased 9% when compared with the prior year period due to a 9% decrease in closings partially offset by a slight increase in average selling price. The decrease in closings and the increase in average selling price occurred across the majority of markets. Income before income taxes decreased 15% primarily due to lower revenues across the majority of markets. The increase in net new orders was mixed among markets.

Current wording

For the nine months ended September 30, 2026, Midwest home sale revenues decreased 8% when compared with the prior year period due to a 9% decrease in closings partially offset by a 1% increase in average selling price. The decrease in closings and increase in average selling price occurred across the majority of markets. Income before income taxes decreased 13% primarily due to lower revenues across the majority of markets. The increase in net new orders was mixed among markets.

Previous wording

For the six months ended June 30, 2026, Texas home sale revenues decreased 17% when compared with the prior year period due to a 12% decrease in closings combined with a 6% decrease in average selling price. The decrease in closings occurred across all markets while the decrease in average selling price occurred across the majority of markets. Income before income taxes decreased 39% primarily due to lower revenues and gross margins across all markets. The decrease in net new orders was mixed among markets.

Current wording

For the nine months ended September 30, 2026, Texas home sale revenues decreased 15% when compared with the prior year period due to an 11% decrease in closings combined with a 5% decrease in average selling price. The decrease in closings occurred across all markets, while the decrease in average selling price occurred across the majority of markets. Income before income taxes decreased 46% primarily due to lower revenues across all markets, and lower gross margins primarily in our Dallas and Central Texas operations. The decrease in net new orders occurred across all markets.

Previous wording

For the six months ended June 30, 2026, West home sale revenues decreased 19% when compared with the prior year period due to an 18% decrease in closings combined with a 1% decrease in average selling price. The decrease in closings and average selling price occurred across the majority of markets. Income before income taxes decreased 53% primarily due to lower revenues and gross margins across the majority of markets. The decrease in net new orders was primarily attributable to our Las Vegas and Arizona operations.

Current wording

For the nine months ended September 30, 2026, West home sale revenues decreased 18% when compared with the prior year period due to an 18% decrease in closings, while average selling price was in line with the prior year period. The decrease in closings occurred across the majority of markets. Income before income taxes decreased 54% primarily due to lower revenues and gross margins across the majority of markets. The decrease in net new orders occurred across the majority of markets.

Previous wording

Our effective tax rate for the three and six months ended June 30, 2026 was 24.2% and 23.6%, respectively, compared with 24.6% and 24.0% for the comparable prior year periods. Our effective tax rate for each of these periods differs from the federal statutory rate primarily due to state income tax expense and federal tax credits. Our effective tax rate for the six months ended June 30, 2026 and 2025 also includes benefits from stock-based compensation.

Current wording

Our effective tax rate for the three and nine months ended September 30, 2026 was 23.9% and 23.7%, respectively, compared with 23.7% and 23.9% for the comparable prior year periods. Our effective tax rate for each of these periods differs from the federal statutory rate primarily due to state income tax expense and federal tax credits. Our effective tax rate for the nine months ended September 30, 2026 and 2025 also includes benefits from stock-based compensation.

Previous wording

At June 30, 2026, we had unrestricted cash and equivalents of $1.3 billion, restricted cash balances of $41.6 million, and$1.4 billion available under our Revolving Credit Facility. Our ratio of debt-to-total capitalization, excluding our Financial Services debt, was 12.3% at June 30, 2026, compared with 11.2% at December 31, 2025. We follow a diversified investment approach for our cash and equivalents by maintaining such funds with a portfolio of banks within our group of relationship banks in high quality, highly liquid, short-term deposits and investments, which helps mitigate banking concentration risk.

Current wording

At September 30, 2026, we had unrestricted cash and equivalents of $1.4 billion, restricted cash balances of $38.1 million, and$1.4 billion available under our Revolving Credit Facility. Our ratio of debt-to-total capitalization, excluding our Financial Services debt, was 12.1% at September 30, 2026, compared with 11.2% at December 31, 2025. We follow a diversified investment approach for our cash and equivalents by maintaining such funds with a portfolio of banks within our group of relationship banks in high quality, highly liquid, short-term deposits and investments, which helps mitigate banking concentration risk.

Previous wording

For the next 12 months, we expect our principal demand for funds will be for the acquisition and development of land inventory, construction of house inventory, and operating expenses, including our general and administrative expenses. We plan to continue our dividend payments and repurchases of common stock. We need to repay or refinance Pulte Mortgage's master repurchase agreement with third-party lenders (as amended, the "Repurchase Agreement") prior to or at the time it comes due in August 2026. While we intend to refinance the Repurchase Agreement, there can be no assurances that the Repurchase Agreement can be renewed or replaced on commercially reasonable terms upon its expiration. However, we believe we have adequate liquidity to meet Pulte Mortgage's anticipated financing needs. Beyond the next 12 months, we will need to repay or refinance our Revolving Credit Facility, which matures in February 2031, and additional unsecured senior notes beginning in March 2031 and beyond (see Note 4). We may from time to time repurchase our unsecured senior notes through open market purchases, privately negotiated transactions, or otherwise.

Current wording

For the next 12 months, we expect our principal demand for funds will be for the acquisition and development of land inventory, construction of house inventory, and operating expenses, including our general and administrative expenses. We plan to continue our dividend payments and repurchases of common stock. We need to repay or refinance Pulte Mortgage's master repurchase agreement with third-party lenders (the "Repurchase Agreement") prior to or at the time it comes due in August 2027. While we intend to refinance the Repurchase Agreement, there can be no assurances that the Repurchase Agreement can be renewed or replaced on commercially reasonable terms upon its expiration. However, we believe we have adequate liquidity to meet Pulte Mortgage's anticipated financing needs. Beyond the next 12 months, we will need to repay or refinance our Revolving Credit Facility, which matures in February 2031, and additional unsecured senior notes beginning in March 2031 and beyond (see Note 4). We may from time to time repurchase our unsecured senior notes through open market purchases, privately negotiated transactions, or otherwise.

Previous wording

Other notes payable include non-recourse and limited recourse secured notes with third parties that totaled $37.4 million and $47.2 million at June 30, 2026 and December 31, 2025, respectively. These notes have maturities ranging up to four years, are secured by the applicable land positions to which they relate, and generally have no recourse to other assets. The stated interest rates on these notes range up to 9%.

Current wording

Other notes payable include non-recourse and limited recourse secured notes with third parties that totaled $25.4 million and $47.2 million at September 30, 2026 and December 31, 2025, respectively. These notes have maturities ranging up to four years, are secured by the applicable land positions to which they relate, and generally have no recourse to other assets. The stated interest rates on these notes range up to 9%.

Previous wording

At June 30, 2026, we had no borrowings outstanding, $343.2 million of letters of credit issued, and $1.4 billion of remaining capacity under the Revolving Credit Facility. At December 31, 2025, we had no borrowings outstanding, $357.1 million of letters of credit issued, and $892.9 million of remaining capacity under the Original Revolving Credit Facility.

Current wording

At September 30, 2026, we had no borrowings outstanding, $368.3 million of letters of credit issued, and $1.4 billion of remaining capacity under the Revolving Credit Facility. At December 31, 2025, we had no borrowings outstanding, $357.1 million of letters of credit issued, and $892.9 million of remaining capacity under the Original Revolving Credit Facility.

Previous wording

At June 30, 2026, aggregate outstanding debt of unconsolidated joint ventures was $45.1 million.

Current wording

At September 30, 2026, aggregate outstanding debt of unconsolidated joint ventures was $64.6 million.

Previous wording

Pulte Mortgage maintains a master repurchase agreement with third-party lenders (as amended, the "Repurchase Agreement") that matures on August 12, 2026. The maximum aggregate commitment under the Repurchase Agreement was $625.0 million at June 30, 2026, which continues until maturity. The Repurchase Agreement also contains an accordion feature that could increase the commitment by $50.0 million above its active commitment level. Borrowings under the Repurchase Agreement are secured by residential mortgage loans available-for-sale. The Repurchase Agreement contains various affirmative and negative covenants applicable to Pulte Mortgage, including quantitative thresholds related to net worth, net income, and liquidity. At June 30, 2026, Pulte Mortgage had $477.9 million outstanding at a weighted-average interest rate of 5.42% and $147.1 million of remaining capacity under the Repurchase Agreement. At December 31, 2025, Pulte Mortgage had $532.3 million outstanding at a weighted-average interest rate of 5.51% and $92.7 million of remaining capacity under the Repurchase Agreement. Pulte Mortgage was in compliance with all covenants and requirements as of such dates.

Current wording

Pulte Mortgage entered into a master repurchase agreement (the "Repurchase Agreement") in August 2026 with third-party lenders that matures on August 10, 2027. The Repurchase Agreement replaced a substantially similar agreement that previously existed with different lenders (the "Original Repurchase Agreement"). The maximum aggregate commitment under the Repurchase Agreement was $625.0 million at September 30, 2026, which continues until maturity. Borrowings under the Repurchase Agreement are secured by residential mortgage loans available-for-sale. The Repurchase Agreement contains various affirmative and negative covenants applicable to Pulte Mortgage, including quantitative thresholds related to net worth, net income, and liquidity. At September 30, 2026, Pulte Mortgage had $383.2 million outstanding at a weighted-average interest rate of 5.61% and $241.8 million of remaining capacity under the Repurchase Agreement. At December 31, 2025, Pulte Mortgage had $532.3 million outstanding at a weighted-average interest rate of 5.51% and $92.7 million of remaining capacity under the Original Repurchase Agreement. Pulte Mortgage was in compliance with all covenants and requirements as of such dates.

Previous wording

In the six months ended June 30, 2026, we declared cash dividends totaling $99.5 million and repurchased 5.5 million shares under our share repurchase authorization for $681.2 million. In the six months ended June 30, 2025, we declared cash dividends totaling $88.7 million and repurchased 5.8 million shares under our share repurchase authorization for $600.0 million. On January 29, 2025, the Board of Directors increased our share repurchase authorization by $1.5 billion, which was publicly announced on January 30, 2025. On April 22, 2026, the Board of Directors approved an additional increase to our share repurchase authorization of $1.5 billion, which was publicly announced on April 23, 2026. At June 30, 2026, we had remaining authorization to repurchase $1.8 billion of common shares.

Current wording

In the nine months ended September 30, 2026, we declared cash dividends totaling $148.1 million and repurchased 8.4 million shares under our share repurchase authorization for $1.0 billion. In the nine months ended September 30, 2025, we declared cash dividends totaling $132.2 million and repurchased 8.2 million shares under our share repurchase authorization for $900.0 million. On January 29, 2025, the Board of Directors increased our share repurchase authorization by $1.5 billion, which was publicly announced on January 30, 2025. On April 22, 2026, the Board of Directors approved an additional increase to our share repurchase authorization of $1.5 billion, which was publicly announced on April 23, 2026. At September 30, 2026, we had remaining authorization to repurchase $1.5 billion of common shares.

Previous wording

We use letters of credit and surety bonds to guarantee our performance under various contracts, principally in connection with the development of our homebuilding projects and insurance programs. The expiration dates of the letter of credit contracts coincide with the expected completion date of the related homebuilding projects and insurance programs. If the obligations related to a project or program are ongoing, annual extensions of the letters of credit are typically granted on a year-to-year basis. At June 30, 2026, we had outstanding letters of credit totaling $343.2 million. Our surety bonds generally do not have stated expiration dates; rather, we are released from the bonds as the contractual performance is completed. These bonds, which approximated $3.1 billion at June 30, 2026, are typically outstanding over a period of approximately three to five years. Because significant construction and development work has been performed related to projects that have not yet received final acceptance by the respective counterparties, the aggregate amount of surety bonds outstanding is in excess of the projected cost of the remaining work to be performed.

Current wording

We use letters of credit and surety bonds to guarantee our performance under various contracts, principally in connection with the development of our homebuilding projects and insurance programs. The expiration dates of the letter of credit contracts coincide with the expected completion date of the related homebuilding projects and insurance programs. If the obligations related to a project or program are ongoing, annual extensions of the letters of credit are typically granted on a year-to-year basis. At September 30, 2026, we had outstanding letters of credit totaling $368.3 million. Our surety bonds generally do not have stated expiration dates; rather, we are released from the bonds as the contractual performance is completed. These bonds, which approximated $3.0 billion at September 30, 2026, are typically outstanding over a period of approximately three to five years. Because significant construction and development work has been performed related to projects that have not yet received final acceptance by the respective counterparties, the aggregate amount of surety bonds outstanding is in excess of the projected cost of the remaining work to be performed.

Previous wording

In the ordinary course of business, we enter into land option agreements in order to procure land for the construction of houses in the future. At June 30, 2026, these agreements had an aggregate remaining purchase price of $9.7 billion. Pursuant to these land option agreements, we generally provide a deposit to the seller as consideration for the right to purchase land at different times in the future, usually at predetermined prices. At June 30, 2026, outstanding deposits totaled $717.4 million, of which $15.8 million is refundable.

Current wording

In the ordinary course of business, we enter into land option agreements in order to procure land for the construction of houses in the future. At September 30, 2026, these agreements had an aggregate remaining purchase price of $9.4 billion. Pursuant to these land option agreements, we generally provide a deposit to the seller as consideration for the right to purchase land at different times in the future, usually at predetermined prices. At September 30, 2026, outstanding deposits totaled $686.3 million, of which $15.1 million is refundable.

Previous wording

For further information regarding our primary obligations, refer to Note 4 and Note 8 to the Condensed Consolidated Financial Statements included elsewhere in this Quarterly Report on 10-Q for amounts outstanding as of June 30, 2026 related to debt and commitments and contingencies, respectively.

Current wording

For further information regarding our primary obligations, refer to Note 4 and Note 8 to the Condensed Consolidated Financial Statements included elsewhere in this Quarterly Report on Form 10-Q for amounts outstanding as of September 30, 2026 related to debt and commitments and contingencies, respectively.

Previous wording

Net cash provided by operating activities in the six months ended June 30, 2026 was $176.8 million. Generally, the primary drivers of our cash flow from operations are profitability and changes in the levels of inventory and residential mortgage loans available-for-sale, each of which experience seasonal fluctuations. The cash inflows from our operations for the six months ended June 30, 2026 were primarily due to net income of $819.0 million and a net decrease in residential mortgage loans available-for-sale of $63.9 million, partially offset by a net increase in inventories of $807.3 million, which was primarily attributable to land acquisition, development, and house spend to support ongoing operations.

Current wording

Net cash provided by operating activities in the nine months ended September 30, 2026 was $637.0 million. Generally, the primary drivers of our cash flow from operations are profitability and changes in the levels of inventory and residential mortgage loans available-for-sale, each of which experience seasonal fluctuations. The cash inflows from our operations for the nine months ended September 30, 2026 were primarily due to net income of $1.3 billion and a net decrease in residential mortgage loans available-for-sale of $179.7 million, partially offset by a net increase in inventories of $1.1 billion, which was primarily attributable to land acquisition, development, and house spend to support ongoing operations.

Previous wording

Net cash provided by operating activities in the six months ended June 30, 2025 was $421.7 million. The cash inflows from our operations for the six months ended June 30, 2025 were primarily due to net income of $1.1 billion, partially offset by a net increase in inventories of $533.0 million, which was primarily attributable to land acquisition, development, and house spend to support expected future growth.

Current wording

Net cash provided by operating activities in the nine months ended September 30, 2025 was $1.1 billion. The cash inflows from our operations for the nine months ended September 30, 2025 were primarily due to net income of $1.7 billion, partially offset by a net increase in inventories of $635.9 million, which was primarily attributable to land acquisition, development, and house spend to support expected future growth.

Previous wording

Net cash used in investing activities in the six months ended June 30, 2026 was $87.8 million. These cash outflows primarily resulted from capital expenditures of $55.3 million related to our ongoing investments in new communities, facilities, and information technology applications, along with $40.9 million of investments in unconsolidated entities.

Current wording

Net cash used in investing activities in the nine months ended September 30, 2026 was $8.8 million. These cash outflows primarily resulted from capital expenditures of $78.2 million related to our ongoing investments in new communities, facilities, and information technology applications, along with $45.8 million of investments in unconsolidated entities, partially offset by distributions of capital from unconsolidated entities of $21.6 million and proceeds from asset dispositions of $90.6 million.

Previous wording

Net cash used in investing activities in the six months ended June 30, 2025 was $39.2 million. These cash outflows primarily resulted from capital expenditures of $64.1 million related to our ongoing investments in new communities, facilities, and information technology applications, partially offset by distributions of capital from unconsolidated entities of $39.4 million.

Current wording

Net cash used in investing activities in the nine months ended September 30, 2025 was $64.1 million. These cash outflows primarily resulted from capital expenditures of $91.4 million related to our ongoing investments in new communities, facilities, and information technology applications, partially offset by distributions of capital from unconsolidated entities of $45.7 million.

Previous wording

Net cash used in financing activities in the six months ended June 30, 2026 totaled $720.5 million. These cash outflows resulted primarily from repayments and redemptions of notes payable of $600.7 million, repurchases of 5.5 million common shares for $681.2 million under our share repurchase authorization, payments of $101.8 million in cash dividends, and net repayments of $54.4 million under the Repurchase Agreement, partially offset by $794.8 million of proceeds from debt issuance.

Current wording

Net cash used in financing activities in the nine months ended September 30, 2026 totaled $1.2 billion. These cash outflows resulted primarily from repayments and redemptions of notes payable of $612.7 million, repurchases of 8.4 million common shares for $1.0 billion under our share repurchase authorization, payments of $150.8 million in cash dividends, and net repayments of $149.1 million under the Repurchase Agreement, partially offset by $794.8 million of proceeds from debt issuance.